111

Investment (example) : 100M Euro - Cash Account

Trust MT 760
Mechanism Customized Trust Bank Account with Cash funds, blocked via
MT760
Instrument None SWIFT MT 760
Initial Costs 150,000 British Pounds 1,000,000 - 2,000,000 Euro
(equals 1%-2% of the Investment)
Additional Costs None None
Taxes The trust pays extremely low taxes. Fully taxable in the country where the investor`s
bank account is located.
Are the Initial Costs If the client is not satisfied with the trade, they will be No. Once the cost for the MT760 has been paid for,
refundable? given a refund for the trust. The payment for the trust the costs are not refundable, whether the Managed
goes into an attorney trust account to ensure all Buy/Sell is successful or not. This leaves the client
aspects of the transaction are handled legally. with much higher risk, unlike the trust structure.
Do the funds have to be moved Yes, into the investor`s trust account. No, BUT Funds are blocked for an entire year and
from the investor`s bank could be inaccessible if the trade didn’t occur.
account into another account?
What are the funds used for? The funds in the trust are used to trade. The client Funds are used as collateral for the managed
moves their funds into their own trust and then the buy/sell. The client is not able to see information
trader manages the account based upon the contract. regarding the line of credit and trading activities.
Control over funds The investor has full control over their funds because When the money is blocked via MT 760, it is used as
the money is in their trust bank account, and they are collateral. Therefore, it is not under the control of the
the sole signatory. client, and they are put at risk.

DISCLAIMER: InsideTrade LLC is not a United States Securities Dealer or Registered Investment Advisor. This information has been provided in response to your request and shall not be
considered a solicitation in any form or context. Furthermore, all material shall be used for informational purposes only, and shall not be relied upon for financial advice. Upon reading this
disclaimer, you hereby acknowledge this warning and agree to the conditions of this relationship. 11.11
111

Risk to lose the investment Very low risk because: Greater risks are involved:

- Funds are not blocked - Risk that the collateral can be seized by the bank
- Guaranteed liquidity at all times in case that the Trader makes a mistake (i.e.
- Money is in the client’s own bank account, and all default of payments, non-performing Exit
transactions/activity is completely transparent. Buyers, etc.)
- Funds are used as collateral – BUT under full - Risk because the investor does not know what
control of the investor. the trader is trading
- Prior to purchasing the notes, the exit buyers - The investor can`t see any of the activities in the
have been arranged by the trader. trader`s account.
- The trader is only allowed to trade within the - Funds will be blocked for an entire year, leaving
conditions of the contract. them inaccessible and at risk.
- The investor can see all the activities in his trust - Risk that the consistent payments of the profits
account. are not guaranteed
- The client pays the trader, rather than the trader - Money transfer delays & red flags are likely
paying the client. without the proper trust structure.

Risk to have delayed to No risk of delayed bank transfers due to the Very high risk of delayed bank transfers, and
transfer the profits structure of the trust, and clients can repatriate profits. client may not be able to repatriate their funds.

Who distributes the profits? The profits go directly to the trust`s bank account. The trader earns money and transfers then the
From there, the trust owner will transfer the investor`s share to their bank account per the
trader`s portion to their bank account. profit sharing agreement.

Client Requirements Once the client is qualified via phone, they can speak Before even speaking with the trader, the client
with the trader immediately. If the client wants to move must show their POF, Passport, CIS, and other
forward after the initial call, they must present a CIS, documents. This leaves the client at risk if their
Passport and Proof of Funds. After due diligence is personal information fell into the wrong hands.
completed, the trust contract will be issued.

DISCLAIMER: InsideTrade LLC is not a United States Securities Dealer or Registered Investment Advisor. This information has been provided in response to your request and shall not be
considered a solicitation in any form or context. Furthermore, all material shall be used for informational purposes only, and shall not be relied upon for financial advice. Upon reading this
disclaimer, you hereby acknowledge this warning and agree to the conditions of this relationship. 11.11